[Congressional Record (Bound Edition), Volume 157 (2011), Part 9]
[House]
[Pages 12063-12065]
[From the U.S. Government Publishing Office, www.gpo.gov]




        SMALL BUSINESS PROGRAM EXTENSION AND REFORM ACT OF 2011

  Mr. HANNA. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 2608) to provide for an additional temporary extension of 
programs under the Small Business Act and the Small Business Investment 
Act of 1958, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2608

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Small Business Program 
     Extension and Reform Act of 2011''.

     SEC. 2. ADDITIONAL TEMPORARY EXTENSION OF AUTHORIZATION OF 
                   PROGRAMS UNDER THE SMALL BUSINESS ACT AND THE 
                   SMALL BUSINESS INVESTMENT ACT OF 1958.

       (a) In General.--Section 1 of the Act entitled ``An Act to 
     extend temporarily certain authorities of the Small Business 
     Administration'', approved October 10, 2006 (Public Law 109-
     316; 120 Stat. 1742), as most recently amended by section 2 
     of the Small Business Additional Temporary Extension Act of 
     2011 (Public Law 112-17; 125 Stat. 221), is amended by 
     striking ``July 31, 2011'' each place it appears and 
     inserting ``December 31, 2011''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on July 30, 2011.

     SEC. 3. REPEALS AND OTHER TERMINATIONS.

       (a) General Provisions.--
       (1) Effective date.--A repeal or other termination of a 
     provision of law made by this

[[Page 12064]]

     section shall take effect on the date of enactment of this 
     Act.
       (2) Rule.--Nothing in this section shall affect any grant 
     or assistance provided, contract or cooperative agreement 
     entered into, or loan made or guaranteed before the date of 
     enactment of this Act under a provision of law repealed or 
     otherwise terminated by this section and any such grant, 
     assistance, contract, cooperative agreement, or loan shall be 
     subject to the applicable repealed or otherwise terminated 
     provision, as in effect on the day before the date of 
     enactment of this Act.
       (3) Applicability of temporary extensions.--A repeal or 
     other termination of a provision of law made by this section 
     shall have effect notwithstanding any temporary extension of 
     programs, authority, or provisions under the Act entitled 
     ``An Act to extend temporarily certain authorities of the 
     Small Business Administration'', approved October 10, 2006 
     (Public Law 109-316; 120 Stat. 1742).
       (b) Pollution Control Loans.--Paragraph (12) of section 
     7(a) of the Small Business Act (15 U.S.C. 636(a)) is 
     amended--
       (1) by striking ``(A) The Administration'' and inserting 
     ``The Administration''; and
       (2) by striking ``research and development'' and all that 
     follows and inserting ``research and development.''.
       (c) Small Business Institute.--Subparagraph (E) of section 
     8(b)(1) of the Small Business Act (15 U.S.C. 637(b)(1)) is 
     repealed.
       (d) Drug-Free Workplace Grants.--Paragraph (3) of section 
     21(c) of the Small Business Act (15 U.S.C. 648(c)) is 
     amended--
       (1) in subparagraph (R) by adding ``and'' at the end;
       (2) in subparagraph (S) by striking ``; and'' and inserting 
     a period; and
       (3) by striking subparagraph (T).
       (e) Central European Small Business Enterprise Development 
     Commission.--Section 25 of the Small Business Act (15 U.S.C. 
     652) is repealed.
       (f) Paul D. Coverdell Drug-Free Workplace Program.--Section 
     27 of the Small Business Act (15 U.S.C. 654) is repealed.
       (g) Pilot Technology Access Program.--Section 28 of the 
     Small Business Act (15 U.S.C. 655) is repealed.
       (h) National Veterans Business Development Corporation.--
       (1) In general.--Section 33 of the Small Business Act (15 
     U.S.C. 657c) is repealed.
       (2) Corporation.--Beginning on the date of enactment of 
     this Act, the National Veterans Business Development 
     Corporation and any successor thereto may not represent that 
     the corporation is federally chartered or in any other manner 
     authorized by the Federal Government.
       (i) Lease Guarantees and Pollution Control.--Part A of 
     title IV of the Small Business Investment Act of 1958 (15 
     U.S.C. 692 et seq.) is repealed.
       (j) Alternative Loss Reserve.--Paragraph (7) of section 
     508(c) of the Small Business Investment Act of 1958 (15 
     U.S.C. 697e(c)) is repealed.
       (k) Small Business Telecommuting Pilot Program.--Subsection 
     (d) of section 1203 of the Energy Independence and Security 
     Act of 2007 (15 U.S.C. 657h) is repealed.
       (l) Technical and Conforming Amendments.--
       (1) Small business investment act of 1958.--Section 411(i) 
     of the Small Business Investment Act of 1958 (15 U.S.C. 
     694b(i)) is amended to read as follows:
       ``(i) Without limiting the authority conferred upon the 
     Administrator and the Administration by section 201 of this 
     Act, the Administrator and the Administration shall have, in 
     the performance of and with respect to the functions, powers, 
     and duties conferred by this part, all the authority and be 
     subject to the same conditions prescribed in section 5(b) of 
     the Small Business Act with respect to loans, including the 
     authority to execute subleases, assignments of lease and new 
     leases with any person, firm, organization, or other entity, 
     in order to aid in the liquidation of obligations of the 
     Administration hereunder.''.
       (2) Title 10.--Section 1142(b)(13) of title 10, United 
     States Code, is amended by striking ``and the National 
     Veterans Business Development Corporation''.
       (3) Title 38.--Subsection (h) of section 3452 of title 38, 
     United States Code, is amended by striking ``any of the'' and 
     all that follows and inserting ``any small business 
     development center described in section 21 of the Small 
     Business Act (15 U.S.C. 648), insofar as such center offers, 
     sponsors, or cosponsors an entrepreneurship course, as that 
     term is defined in section 3675(c)(2).''.
       (4) Veterans entrepreneurship and small business 
     development act of 1999.--Section 203(c)(5) of the Veterans 
     Entrepreneurship and Small Business Development Act of 1999 
     (15 U.S.C. 657b note) is amended by striking ``In cooperation 
     with the National Veterans Business Development Corporation, 
     develop'' and inserting ``Develop''.

     SEC. 4. TERMINATION OF EMERGING LEADERS PROGRAM.

       Notwithstanding any other provision of law, the 
     Administrator of the Small Business Administration may not 
     carry out or otherwise support the program referred to as 
     ``Emerging Leaders'' in the document of the Small Business 
     Administration titled ``FY 2012 Congressional Budget 
     Justification and FY 2010 Annual Performance Report'' (or any 
     predecessor or successor document) and may not carry out or 
     otherwise support any successor to that program with similar 
     goals.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Hanna) and the gentlewoman from New York (Ms. Velazquez) each 
will control 20 minutes.
  The Chair recognizes the gentleman from New York.


                             General Leave

  Mr. HANNA. Mr. Speaker, I ask unanimous consent that all Members 
shall have 5 consecutive days to revise and extend their remarks and 
include extraneous materials on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. HANNA. I yield myself such time as I may consume.
  Mr. Speaker, there are a few components to the legislation we have 
before us.
  First, the bill provides for a straightforward extension of certain 
SBA programs through December 31, 2011. This is a necessary measure 
since the current extension, which the House passed in May, expires at 
the end of this month. As we continue to do work with our Democratic 
colleagues and with our colleagues in the other body towards a full and 
complete reauthorization of the SBA and its programs, this extension 
will ensure that these programs are still available to provide 
assistance to entrepreneurs who need to create jobs.
  Secondly, the bill before us terminates several duplicative and 
outdated programs that are either used very infrequently or not at all. 
It has been said that, once a program is initiated, it is almost 
impossible to eliminate. Today, we will prove that notion wrong. The 
program eliminations contained in this bill represent a good first step 
toward cleaning up the SBA's program portfolio, thereby refocusing the 
agency's energy on their core mission of facilitating small business 
lending, offering entrepreneurial advice to small business owners, and 
ensuring that they receive their fair share of Federal contracts.
  For example, one of the programs selected for termination is the 
Central European Enterprise Development Program. This initiative has 
not been funded since 1995, and one of the countries involved, 
Czechoslovakia, no longer exists. For an even more striking example, 
the Pollution Control Bond Guarantee program, initiated in 1976 to 
provide SBA-backed bonds for the purchase of pollution and control 
equipment to retrofit existing factories, has not offered a single bond 
guarantee since the early eighties.
  Simply having these programs on the books at the SBA detracts 
manpower and resources away from the SBA's core programs, and it is 
time to get them out of the way. Not only does this bill clean up the 
SBA; it also saves money.

                              {time}  1850

  The bill eliminates two drug-free workplace programs. These programs 
were allocated $2 million for fiscal year 2011. While not a huge sum of 
money when considering the overall fiscal budget, each and every penny 
we save is a penny we don't have to borrow.
  For additional cost savings, the legislation also prohibits the SBA 
from using any of its discretionary funding on its Emerging Leaders 
Program. While the program started in fiscal year 2009 without any 
congressional approval or authorization of appropriations, the SBA has 
requested $3 million for this program for 2012. The program is 
duplicative of existing entrepreneurial development programs and does 
not have a good matrix for evaluating the program's success.
  The SBA ought to be focusing on well-evaluated, congressionally 
authorized programs that have been fully vetted and supported by 
Members of Congress.
  I would like to thank the gentlelady from New York, our committee's 
ranking member, Ms. Velazquez, for her efforts to craft this 
legislation. It is a

[[Page 12065]]

breath of fresh air to work in a truly bipartisan manner on important 
issues facing our Nation, and I appreciate her leadership on this 
issue.
  With that, I urge my colleagues to support H.R. 2608 as amended.
  I reserve the balance of my time.
  Ms. VELAZQUEZ. I yield myself such time as I may consume.
  Small businesses who employ more than half of all private sector 
employees remain absolutely critical to the U.S. economy. With the 
unemployment rate at 9.2 percent, we need them more than ever to create 
new jobs. Central to these efforts are the tools and resources of the 
Small Business Administration which enable entrepreneurs to secure low-
cost capital, fairer contracts, and technical assistance.
  However, over time, I feel the agency's programs have become 
redundant and unnecessary. Many have not been funded in decades, while 
others are simply antiquated policy remnants from a bygone era.
  It is a disservice to both small businesses and taxpayers to keep 
these obsolete initiatives on the books. By cleaning up the statute, as 
this legislation does, we can be assured that efforts to assist small 
businesses both now and in the future will be both efficient and up to 
date.
  Importantly, many of these cuts were at the behest of our colleagues 
in the Senate. Given this, it is my hope that the Senate takes up this 
legislation and passes it expeditiously.
  Chairman Graves is also to be commended for his comity and bipartisan 
approach to vetting these charges. Doing so has produced a bill that 
does not adversely affect small businesses.
  Similarly, a new but equally concerning trend has been the growth of 
unauthorized programs. The costs of this program have grown 
dramatically to equal more than $50 million and constitutes nearly 10 
percent of the SBA's noncredit programs budget. By passing the 
legislation before us, Congress can take a small but meaningful step 
that will begin to close this loophole.
  The reforms in this bill come against a backdrop of extending certain 
authorities for the SBA itself. However, whether or not this 
legislation becomes law has no bearing on whether the agency can serve 
small businesses. Given the passage of the full-year continuing 
appropriations bill and a prior SBA extension passed 2 months ago, the 
agency will remain fully operational irrespective of the passage of 
this bill.
  Ensuring that small firms have continued access to a strong and 
stable SBA is more important than ever. The agency's resources enable 
would-be entrepreneurs to start up while helping existing ventures 
expand. By doing so, we will allow small business owners to do what 
they do best and create the jobs we need to move the economy forward.
  I urge my colleagues to support this legislation.
  I yield back the balance of my time.
  Mr. HANNA. Mr. Speaker, in closing, let me state that small 
businesses can and will lead our economic recovery. It's time that 
those of us in Congress provide them with the certainty they need to 
create jobs and grow our economy. The legislation we have before us 
today gives small firms the confidence to know that the SBA programs 
they rely on will be there for them when they need them. It also shows 
them that this House is serious about cutting spending, lowering debt, 
and restoring confidence to our entrepreneurs.
  I look forward to continuing to work with the chairman and the 
ranking member and all our colleagues on the Small Business Committee 
to enact policies that benefit American entrepreneurs.
  I urge my colleagues to support this good bill.
  Mr. PETERS. Mr. Speaker, I rise today to express my support for 
reauthorizing the Small Business Administration, which helps countless 
entrepreneurs receive the training and access the capital they need to 
start and expand small businesses and create jobs. While I support the 
reauthorization of these vital programs, I am concerned with provisions 
in the underlying bill that would prevent some entrepreneurs from 
obtaining vital assistance.
  Specifically, H.R. 2608 singles out the e200 Emerging Leaders program 
for elimination, which targets entrepreneurs in underserved communities 
across the country like metro Detroit that have been severely impacted 
in these tough economic times. This program targets businesses in inner 
cities and economically hard-hit areas that show a high potential for 
growth, providing them with the network, know-how and resources they 
need to build a sustainable, growing business that promotes economic 
development within their communities. This program has a proven track 
record. Small businesses that complete the program increase their 
revenues and create jobs where they are needed most.
  In addition to eliminating this vital program, this bill prevents the 
Small Business Administration from carrying out any succeeding program 
with similar goals. While I support the underlying reauthorization of 
the Small Business Administration, I strongly disagree with the 
elimination of the e200 Emerging Leaders program, and the prohibition 
of future initiatives that help small businesses thrive in some of the 
areas hardest hit by the recession.
  Mr. HANNA. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from New York (Mr. Hanna) that the House suspend the rules 
and pass the bill, H.R. 2608, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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